Research and Development
The Daiken Group has positioned development of industrial materials using sustainable resources, such as timber, andtechnological development to create safe, secure, healthy, and comfortable spaces centering on the R&D center as the priority
themes and has been proceeding with research and development aimed at creating new shared value that will lead to theresolution of social issues and expansion into new technologies and new businesses for the next generation. In addition, tospeed up the far-sighted research and development and expand the domains, we proactively put effort into the co-creation
activities with various stakeholders.

Policyusing co-creation (open innovation), and the creation of new business toward the new generation● Nourishment of a culture that admires and supports challenges by creating a mechanism to be able tochallenge new business areas

DaikenGlobal Environment Vision
2050

Industrial
Materials

BuildingMaterials

1

Prioritized Theme

Development BaseIntellectual Property Strategy
Intellectual property strategy to lead thedevelopment areas linked to themanagement strategy and to secure
differentiation and a competitive advantage

Analyses andEvaluations

Human Resource Development
Development of human resources to keep
opening up the future with technologies,ideas, and passion

R&D Investment
Aggressive investment ofmanagement resources toaccelerate the efforts

Daiken R&D Center

Communication with Stakeholders
Universities andResearch Institutions

Expansion of business domains andcreation of joint development themesby technology exchanges● Matching between the technologicalseeds and needs●

Joint development andcomprehensive partnership●Work experience through internships
Interactions with the generation that will bear thefuture●

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Deepening their understanding of ourproducts and quality● Enhancementof the relationship of trust●Creation of new businesses
Expansion of the existing
businesses

Students/Recruitment●Customers and Suppliers● High functionality of the wooden boards and inorganic boards● Wood building material utilization development in the new field● Technology development to use unused resources● R&D of industrial materials for new markets other than building materials

SpatialEnvironment

Development of spaces
and building materials thatwill realize a comfortablelife

Within the Company

A company that is loved by the
local community● Cooperation with a municipality●Enhancement of cooperation, sharing of issues, anddiscussions of development themes● Acquisition of a way of thinking necessary for capability
development as well as research and development

Development of newsecure and safe building
materials that will beneeded by society in the future

BuildingMaterials● Development of environment-conscious building materials
 evelopment of high functional paints and painting technology●D● Development of new construction technique for building materials
 dding a high value to wood building materials●AAnalyses andEvaluations● Development of energy-saving and indoor environment improvement

technologies● Analysis by simulation of the thermal, humidity, and cross-ventilation

Various measurements
and analyses of spaces
and building materials
using the expertise
cultivated in R&D● Measurement of air quality● Sound insulation performance evaluation● Building materials’ heat generation testenvironment● Asbestos analysis

Organizational structure toward the enhancement of intellectual property
strategies and investment of management resources
In starting the new medium-term management plan GP25 3rd Stage from fiscal 2023, we have newly established the development division toward
the acceleration of the initiatives for new businesses, new technology development, and product development. R&D center, which is the core oftechnology development, and next-generation business development department, which is responsible for crystallization of new businesses toward
the next generation are under the division and to increase the linkage with the intellectual property strategies, we departmentalized the intellectualproperty department and enhanced our organizational structure. To make the research and development capabilities, which are the sources ofDaiken Group’s strength, robust, we proactively invest management resources and lead to the medium- to long-term corporate value improvement.

Trends in the R&D Costs, Right Holder Scores, and Number of Patents Owned
Development Division
R&D center
Next-Generation
Business Development
Department
Intellectual Property
Department

Local Community●Further improvement ofthe existing industrial
materials and developmentof industrial materials that will become akey to capturing new markets

Data

Co-creation
activities

Companies and Manufacturers

In addition to the pursuit of the possibilities of industrial materials, we have beenproceeding with research and development to give a new function to industrialand building materials. We grasp the spatial environment based on the assay
evaluation technology, delve into it from the perspectives of the temperature,humidity, and sound environment that are essential when people spend time
comfortably, and at the same time, we conduct assay evaluations toward making responses to harmful substances, such as asbestos and formaldehyde.
While further saving of energy in buildings is required toward the realization ofa decarbonized society, we also have been focusing on research projects concerning temperature and humidity to simultaneously pursue the comfortableness of livelihood and the reduction of consumption energy by the functions ofindustrial and building materials.
While performance that people require
for spatial environment changes withtimes, by always thinking what performance will be necessary in the future andproceeding with technology development of functional building materials, wewill realize the creation of a safe, secure,healthy, and comfortable space.
Thermal image measurement

R&D Theme

Industrial
Materials

2Development oftechnologies thatcreate safe, secure,
healthy, andcomfortable
spacesPassion

Daiken has been accelerating not only the research and development of industrial and building materials that effectively use timber
but also the research and development aimed at challenging a newarea without being bound by conventional ideas and the initiatives
toward commercialization. Above all, as part of the initiatives for thehigh-degree application of timber, we have been proceeding withthe development of technology to utilize cellulose nanofibers (CNF)
that are fibrillated timber at the nano-level under the joint researchwith a university and collaboration with a company.
If we can establish the technology to use CNF that has strengthand workability, it will become possible to expand into the domain
where plastics, metals, and othermaterials have been conventionallyused. With this, the possibility as a
product from a new perspective inthe market and area that our groupaims to expand into will widen andwe will be able to significantly contribute to the realization of a sustainable society.
Strength test

Foundation Supporting Value Creation

Idea

SpatialEnvironment

Prioritized Theme

R&D that embodies
the mission in the group
corporate philosophy

2

The R&D Center works on Ecology and Improvements in the Quality of Space in four sectors and promotes R&D that will contribute to a sustainable society.

Development ofindustrial materials
that use sustainableresources, suchas timberTechnologyExpansion into newtechnologies and new
businesses for thenext generation

1

Development of technologies thatcreate safe, secure, healthy, andcomfortable spaces

Prioritized
Theme

Strategy for Value Creation

Creating new shared valuethat will lead to theresolution of social issues

Development of industrial
materials that use sustainableresources, such as timber

Prioritized
Theme

Daiken Group's Value Creation● Development of new technology for the resolution of social issues, business expansion by aggressively

Development of Technologies*
Right holder score: One of the indicesto evaluate the value of the entire patentgroup owned. The right graph shows
values by indexing fiscal 2016, which isthe benchmark, as 100 to indicate thechanges over the years. Created by using Patent Result Co., Ltd.’s Biz Cruncher.

(¥million)

1,800

Number of patents owned

1,430

1,477

1,551

1,592

100

112

2913082016

2017

Benchmark1243182018

GP25 1st Stage

550
500

177

450
400

149

600

0

1,587

1,491
163

900

300

(1 patent)

R&D expenses

1,452

1,500
1,200

Right holder score (Indexed)

132

339

361

20192020

390

2021

401

350
300

2022 (Fiscal year)

250

GP25 2nd Stage

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